Turn back time


“… if they could turn back time. If they could find a way…”

Well, they did find a way. Recently I blogged about changes private mortgage insurance (known as PMI) companies made to their guidelines for conventional loans. For all the details, see this post.

The short summary – in order to be approved for a loan with PMI, borrowers need 3 trade lines that are at least 12 months old (or over 12 months old when the account was closed).

This change wasn’t a deal breaker for my clients, it was just more annoying than anything else. As I said in another recent post, it is good to have options. If the PMI three trade line requirement was a problem, then I would be able to offer a program that would work. That is the advantage of working with multiple lenders who each have their own set of guidelines.

Now that the three trade line requirement is gone for some of the PMI companies, a great question to ask is “what is the new requirement?

Basically, guidelines are going back to what they were prior to the three trade line requirement. For the most part, borrowers who have at least 3% down, a qualifying credit score, and one established trade line (a credit card for example) will qualify for a conventional loan with PMI.

That is fantastic news as it allows for more options for consumers who have a limited credit history from either getting a late start OR simply choosing to pay cash for most items during their life.

If you are looking to buy or refinance a home in Georgia within the next 12 months, now is a good a time as any to get started! I’d be glad to help you through the mortgage in process.

But good news is good news, so let’s celebrate. Take it away Cher…


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